How to plan your financial future?
This Blog is going to discuss conventional retirement planning with a millennial friendly accelerated retirement plan, so as to feel richer and secure earlier in life. To think about it, if your are in your late 20s and early 30s then you have gained a great understanding of the world from different perspectives to have enjoyed as well as disliked it.
Now could be a great time to finally start making some money. You may have walked the line from Left to Right, understanding better how the whole world functions, begun to appreciate capitalism as you build your little investment pot in assets, to have traveled enough, to start Blogging every trip to monetize it, making small savings as they will be of use on a later date.
Now is the time to love economic prosperity and spending of others as you will be now invested in the direction of economic prosperity for all.
Approach to life: For a prosperous future
Your future could depend on the ability of the youth to continue to contribute for your pensions. A better world of informed people, doing great financially is mutually beneficial for those already invested.
With time, investment in equity tends to rise multi folds, thus protecting your hard earned money from inflation, putting it to productive use. So you basically need assets that generate income streams. Use the income to buy more assets, so as to finally end up having enough income to be able to reinvest and spend it conveniently.
Older citizens invested in the youth need to make sure that the youth are able to be more productive than the earlier generation. Productivity, health and education go together.
What is Conventional Retirement Planning?
The things most people do. Live frugal, save and invest in equities, real estate, gold etc. My strategy has been the same as I was never too keen of trading my equities too often in short term at least.
Or going big in some successful side business activity. My approach to equities was to remain broadly invested long passively, hoping to be rich in 20-30 years. Of course, I too had planned to accelerate the process by making more income and staying decently frugal.
Making a Blog and use it to market other services like Web Development and Equity Research reports as an additional source of income was thought of to be one way to go about things. But my approach is still too conventional and novice. Need to up the game.
Need to get in limitless mode to accomplish your retirement plan if you want to get really rich earlier. Your investments will compound with time, but that is exactly the problem, it will take time. To save time, you need to start making big and continue to save & invest big.
What is MilanKaRaja Retirement Planning? 🙂
You may also go ahead in doing a business where you directly manage bigger risks. Trade on equities by Active Investing along with passive investing to give them a boost in returns might help. Dividend reinvesting is conventional wisdom, but needs to be highlighted again.
So in all say you have your Paper assets, Real Estate and your Business, the later two will help you retire early. Paper assets will need more time to compound unless you have been really good in picking some really great stocks in big amounts.
Apart from equities, my approach to retirement planning is to build up systems. Do you travel a lot, are you able to monetize your travel experience?
What about a cool job? Do you teach what you learn?
Starting a self business has never been easier. You can accept digital payments easily with your own website.
I am just an amateur. Maybe even inspired from kids younger than me. But I am confident of my Blogging expedition. I would totally recommend everyone else to do it too. Make better use of weekends and set your Blog up.
Creating digital assets is the key focus of my retirement planning. You need to boost your incomes and sometimes little effort on a website can give you immense returns.
My stock portfolio is very much diversified. Invested mainly in dividend paying companies. Spread across the spectrum. Have a great mix of large, Mid and Small Cap. A few risky bets that hopefully might make me richer. But I dont bother about that much. My stocks are for the long term. All the way to retirement. The aim is to build my stock portfolio.
As those consistent dividends are best left passive.
What is a good retirement game plan?
Go frugal now. Save and invest properly to build enough assets to earn enough residual income that exceeds your personal expense. If you have reached this stage then you have successfully built a loop that will only keep increasing considering that you don’t incur any unexpected big expense in the short term.
Make sure to have assets whose returns consider the effects of inflation as well. Owning equity allows you to hedge yourself from inflation, while fixed income bonds would not do good as inflation eats up your fixed returns with time. If you are young and have time, go for good equity of fundamentally strong companies with a few well thought high risk picks.
Make sure to have diversified uncorrelated assets as well. Have equity, money in bank, some fixed assets, some gold, some real estate, some Blogs, some other crazy new business ideas, some free lancing, some consulting services. Its all money making so the experience in each should all be related and useful right? The Indian Demonetization of currency has reduced capital gains to equity holders, making money in bank a safer option across the country.
The important thing to take away is my realization of accomplishing a goal to have enough passive income to meet my expenses comfortably. Breaking this down to further little goals quickly will help you reach there faster.
Once you reach this stage, you should be knowing well how to make income in a way that you truly enjoy. Keep the loop going and growing to reap bigger returns.
Read this interesting blog to learn more (Click here). Though dont trust everything you read online, think well about it.
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